MTN Group, a South African multinational mobile telecommunications company, operating in many African and Asian countries, has confirmed the renewal of its operating licence in Rwanda with effect from 1 July 2021.
"MTN Rwanda has concluded its licence renewal process with Rwanda Utilities Regulatory Authority (RURA)," the mobile telephone operator confirmed in its half-year statement.
MTN Rwanda, formerly M-Cell, has paid 70% of the RWF91 billion (USD75.7 million) renewal fee, equivalent to around RWF64 billion, with the remaining 30% due by July 2022. The new concession is valid for ten years.
According to local media, the licence fee along with MTN Rwanda’s ongoing operational and investment requirements was funded by cash generated from operations and supplementary funding from local banks.
"It is obtaining a RWF 64 billion loan syndicated by ten domestic banks to raise funds for the licence," it said.
With its telecoms license in hand, MTN Rwanda is hatching investments to establish its hegemony in the local market, the reports claimed.